Most expats have a strong desire to buy or retain ownership of residential property in the UK due to ever-increasing property prices and long-term security.  Even with the Brexit situation property in the UK has remained strong with values seemingly rising all the time albeit at a lesser rate.

Certain parts of the country are stagnating in terms of increasing but overall the UK market is as vibrant as ever.

There is still a lack of housing which makes the buy-to-let market very attractive to expats who want a foothold in the UK and achieve a return on their capital. If you look at the basic interest rates on offer at the major banks it’s little wonder why expats don’t see savings as a way forward.

Whatever reasons you may have for considering purchasing a house or flat in the UK, the good news is that there are lenders who are more than willing to offer expats mortgages. Many providers don’t even advertise the fact. 

The expat mortgage market is very complex, you would be wise to seek professional independent broker advice as to what product best meets your needs. Independent brokers will have access to a number of companies offering very favourable rates which are tailored to suit most needs, including buy to let.

Re-mortgaging to get the best rates of interest and save money

When taking out a new mortgage it is normal to get an introductory rate, for example it may be a low fixed or discounted rate or a low tracker rate for the first few years.

Introductory deals normally last for between 2 to 5 years but some are only months. Once the deal comes to an end it is likely the mortgage reverts to the standard variable rate which can then start to cost you extra money.

Can we assist you?

If you are looking for a new or re-mortgage do get in contact and one of our qualified advisers will be happy to help.

EExpats who own property in the UK have been warned to take note of a tax charge which comes into force next month on sales of both residential and commercial property and land.

The Association of Taxation Technicians says that non-UK residents who sell any UK land or property from April 6 onwards must file a non-resident Capital Gains Tax return and pay any tax due within 30 days of the sale.

Non-UK residents selling a residential property have been liable to UK tax and required to file a tax return with HMRC within 30 days of sale since 6 April 2015.

But from 6 April 2019, these rules will apply to all sales of UK land and property both residential and commercial as well as disposals of substantial interests in companies which are “UK property-rich” – otherwise known as “indirect disposals”.

Any non-UK resident who owns an interest in UK land or property needs to be aware of these significant changes. In particular, those looking to sell need to be aware that they will have to file a non-resident Capital Gains Tax return with HMRC and pay any tax due, in a very short time frame.

For disposals of commercial property and indirect disposals, only an increase in value after 6 April 2019 will be subject to tax.

This means that, in the short term at least, any tax due on such disposals is likely to be minimal. Even if there is no tax due, or a property is sold at a loss, there is still a requirement to file a non-resident Capital Gains Tax return within 30 days or face penalties.

Good advice for expats who hold UK commercial land or property should consider getting their property valued as at 6 April 2019 whether or not they anticipate a future sale. In the event of such a sale, the value at that date would be used to calculate the taxable gain.

Non-UK resident individuals disposing of residential property will be subject to capital gains tax at 18 or 28% depending on whether they are basic rate or higher rate taxpayers

.

For direct disposals of non-residential property and all indirect disposals (irrespective of whether the company holds residential or commercial property) the capital gains rates will be 10 per cent or 20% again depending on whether the taxpayer is a basic rate or higher rate taxpayer.

PThe average asking price for UK homes jumped by almost £3,500 in April – making it the biggest month-on-month uplift in over a year, new data has revealed.

Across Britain, the average price of new-to-the-market properties increased by an average of £3,447 in April – equivalent to 1.1% – making it the biggest month-on-month increase since March 2018, according to the House Price Index. 

The average asking price of a property is now £305,449 – still 0.1% lower than a year ago, despite the spring bounce in April.  

Home buyers and sellers are ‘bored of Brexit’ and cannot keep putting their lives on hold whilst negotiations continue.

It is not uncommon to see prices increases at this time of year, but it is still the biggest increase seen for the month of April since 2016.

However, Brexit uncertainty continues to hold back the market as new seller asking prices, the number of properties coming to the market and the number of sales agreed all below this time last year.

The value of properties are holding their value better with an average 0.7% year-on-year price increase. This is compared to a national fall of 0.1% for all properties.  

The best way to describe the sentiment in the market at the moment is “bored of Brexit” – fed up with sitting on their hands, sellers are now looking to get on with their lives and move to a new house and buyers are looking to secure somewhere new.

Can we assist you?

If you are looking for a new or re-mortgage do get in contact and one of our qualified advisers will be happy to help.

EA recent report has shown a large increase in expat buy-to-let business, figures show expats are increasing their portfolios as quickly as they can. This year has seen a surge of first time buy-to-let applications in January and February compared to the same period last year.

A new survey shows more than 50% of existing expat landlords are looking to increase their portfolios as they see very good profits in the long term. One of our expat landlords recently expanded his portfolio “I live in Belgium and have seen my property value here fall considerably over the last 5 years.”  “This is not the case in the UK with values and rents increasing year on year” “With such poor returns on my savings accounts I will be increasing my portfolio again when the right opportunity arises.”

At this present time all is in the favour of the landlord with low mortgage interest rates and stable rental incomes.  It has become much easier in the last 12 months for expats to be able to secure a mortgage if the required deposit levels are available.

Lenders are without doubt seeing this market place as a growth area and more and more deals are becoming available on a daily basis. If you are thinking of going into this area of investment call us and we will be pleased to talk over your options.

Buy to let mortgages

UK and expat landlords are reaping rewards from lower mortgage charges and longer fixed rate deals. The various products that are now available are vast and you should be very careful before deciding which deal meets your needs. We always recommend talking to a professional independent adviser as some deals are not quite what they seem.

Competition in the market place is forcing lenders to reduce charges and fees as well as offering longer fixed rate deals.

Need some assistance?

If we can help with your new mortgage please call one of our fully experienced independent advisers, we are here to help!

The Bank of England base rate has been unanimously held at 0.75% for the third time this year.

In the minutes the Monetary Policy Committee noted that there is still a weakness in the housing market.

They said: “Weakness in the housing market had also persisted, with housing investment having declined in Q4, the UK House Price Index having fallen at its fastest pace since mid-2011 in the three months to February, and the number of mortgage approvals for house purchase having fallen in March.

“That said, the total number of residential property transactions had been more stable. Secured household credit conditions were little changed, although high loan-to-value mortgage rates had continued to fall.

“Consumer credit growth had slowed further in March, to 6.4% on a year earlier, with evidence from the latest Credit Conditions Survey suggesting that that had partly reflected a continued tightening in credit availability.”

The Bank now expects Britain’s GDP to grow by 1.5% this year, up from 1.2% forecast in February, owing to a larger-than-expected boost from companies in the United Kingdom and the European Union building stocks ahead of the Brexit deadlines. However that boost is likely to be temporary.

Expat mortgage business is still growing fast

This financial year has seen more new expat mortgage business being conducted than this time last year and applications are still rising as the year progresses.

Expat mortgage rates still remain at a very affordable level fuelling the increase in business being done in all sectors of the mortgage market.

Can we help?

As expat mortgage specialists we offer a much-valued service to our client so please make contact if we can assist you.